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Coke to divest 39% more equity by Feb 03

Coca-Cola India said on Tuesday that it was "committed" to divesting 39 per cent more equity by February next to business associates and private investors to meet the deadline set by the government, having already offloaded 10 per cent shares in favour of employees.

The government had asked coke to divest up to 49 per cent stake in Indian operations to meet the mandatory divestment condition imposed at the time of the Atlanta giant's re-entry into the country.

On the divestment issue, Coca-Cola India is being advised by ABN Amro and ICICI Securities and talks with various stakeholders are currently on. The company plans to take the private placement route for meeting the divestment condition.

"The process (of divestment) is on. We are committed to divest another 39 per cent equity by February 28 next year," Coca-Cola India deputy president Sanjiv Gupta told reporters in New Delhi.

Asked if the company had broken even in India, Gupta replied in the affirmative but declined to comment on when the Indian operations will begin to make net profit.

On the investment made by the US giant in India till date, Gupta put the figure at $805 million while adding that the company continues to invest in the country and will pump in more funds next year to support the launch of 200 ml packaging.

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